Nvidia Stock Reaches New High Amid Strong AI Demand

Nvidia (NVDA) achieved a record closing price on Monday, driven by Wall Street's optimism regarding the upcoming earnings reports for major technology companies in November.

Record Stock Performance

The shares of the chipmaker rose by 4.14%, ending the day at $143.71 per share. Following the market close, Nvidia's stock continued to climb further. Earlier in the trading session, the stock had reached an intraday record high of $142.46, as reported by Barron’s. This impressive performance places Nvidia's shares up by 198.34% for the year to date.

Bank of America's Price Target Increase

In a recent update, Bank of America increased its price target for Nvidia from $165 to $190. The adjustment reflects their confidence in Nvidia’s leading position in the industry and the significant opportunities ahead. Analyst Vivek Arya noted that recent developments in the industry—including earnings results from Taiwan Semiconductor Manufacturing Company (TSMC) and an AI event hosted by Advanced Micro Devices (AMD)—contributed to this revised outlook.

Arya emphasized, "We also highlight a growing presence of AI in enterprise, where Nvidia is the partner of choice." This underscores the increasing importance of AI solutions in various sectors.

Market Reactions and Fluctuations

Last week, Nvidia's stock saw a significant boost after TSMC reported earnings that exceeded market expectations. On Thursday, Nvidia briefly climbed over 3%, setting an intraday record of $140.89 per share. The last recorded intraday high before this week was $140.76 per share, reached on June 20.

Recently, TSMC announced revenues of NT$759.69 billion (approximately $23.5 billion) for the quarter ending September 30, marking a 36% year-over-year growth in U.S. dollar terms and a 12.9% increase from the prior quarter.

However, the stock market can be volatile. Nvidia's shares experienced a drop of over 4% the previous Tuesday after reaching a record high of $138.07, following reports that the U.S. government might restrict the sales of advanced AI chips from American manufacturers to certain countries.

Nvidia, Stock, AI